Consider projects A and B: ...
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Accounting
| Consider projects A and B: |
| Cash Flows (dollars) | |||||
| Project | C0 | C1 | C2 | NPV at 10% | |
| A | 31,500 | 22,200 | 22,200 | + | $7,029 |
| B | 51,500 | 34,500 | 34,500 | + | 8,376 |
| a. | Calculate IRRs for A and B. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) |
| Project | IRR |
| A | % |
| B | % |
| b. | Which project does the IRR rule suggest is best? | ||||
|
| c. | Which project is really best? | ||||
|
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